Five Days Of Narrow Ranges Inside A Trading Range Suggests Big Move Ahead
Market Outlook – 29 March 2017
Five Days Of Narrow Ranges Inside A Trading Range Suggests Big Move Ahead; Nifty, Nifty Bank At The Verge Of A Breakout; Contraction In Market For Past Few Days Is Likely To End Soon; Financial Stocks Likely To Outperform.
Narrow range movements continue in the Nifty. Within this narrow range, the markets are crafting a bullish bias. But, the elephant in the room is the very narrow range movement in the Nifty.
This narrowing of the range represents contraction. On the daily charts, index is trading within the range of just 120 points. Such narrow ranges cannot last therefore; we can expect a fairly large move in the Index which would be expansion.
When markets are in contraction, there is always a possibility that the expansion can be on any of the two sides – up or down. However, for the fact that prices started the session with a gap up and closed it on a day’s high, index may favors the expansion on upside.
Financial stocks continue to outperform with Bank Nifty is also at the verge of a breakout from a narrow trading range. Traders can look for a buying opportunity in Banking and Financial stocks only on dips and consolidation breakouts.
Bank Nifty had a narrow range day in the markets; index opened with a gap up and traded choppy throughout the day. Index made a high just above 21250 and at the end of the day, prices closed near the highs at 21230.10 with a gain of nearly 200 points. However, index managed to sustain the gap up which may lead to an up move in Bank Nifty.
On the daily charts, the index is trading inside a range 20450 – 21300 from last month but now at the verge of a breakout. We are giving a long trade in the anticipation of a breakout in the Bank Nifty.
Trade in BANK NIFTY: Look for a buying opportunity above 21350.
Or, if opens above 21350 then apply 15 min rule.
The idea is to wait for first 15 min to be over. Your entry point will be the high made between 09:15 to 09:30 AM. If prices cross 15-min high, then take a long trade.
If that trade executes, place your stop below 21100 in either of above two cases.
|SBIN||282||BUY||Intermediate and short term trend is up in SBI. The stock has seen an upside rally and then started a process of consolidation. Prices have seen a breakout and closed higher. Buy this stock above 283. If this trade executes then place your stop just below 280 and a target near 290.|
|IBULHSGFIN||964||BUY||Intermediate and short term trend is up in IBULHSGFIN. The stock has seen an upside rally and then started trading narrow. Prices are now at the verge of breakout from its resistance. Buy this stock above 965. If this trade executes then place your stop just below 950 and a target near 995.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|SUNTV||MAR FUT||BUY||784.5||CMP||770||795-800||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|EICHERMOT.17.03 Mar||25073||3.37||4.08||187950||PETRONET.17.03 Mar||393.2||-3.33||13.79||5011500|
|AXISBANK.17.03 Mar||504.5||3.24||0.07||27693600||TECHM.17.03 Mar||458||-2.51||10.03||10391700|
|SUNTV.17.03 Mar||784.5||3.05||1.03||5478000||KOTAKBANK.17.03 Mar||861.35||-1.18||11.44||9265600|
|ZEEL.17.03 Mar||530.7||2.57||4.7||8390200||ONGC.17.03 Mar||187.3||-1.11||1.81||37121250|
|TATAMTRDVR.17.03 Mar||286.6||2.52||6.39||15395100||DISHTV.17.03 Mar||109.05||-0.91||0.27||20804000|
|Short covering||Long Unwinding|
|SRTRANSFIN.17.03 Mar||5.26||-1.26||2301600||1076||BHARATFIN.17.03 Mar||828||-3.58||-1.13||14720000|
|INDIACEM.17.03 Mar||2.86||-2.66||19617500||158.35||CEATLTD.17.03 Mar||1289.9||-3.28||-11.54||1803200|
|TORNTPHARM.17.03 Mar||2.83||-2.95||184400||1447.85||APOLLOTYRE.17.03 Mar||204.8||-2.78||-10.89||9576000|
|BHARATFORG.17.03 Mar||2.78||-5.52||3207000||1050.15||MRF.17.03 Mar||58615||-2.15||-4.01||40230|
|JINDALSTEL.17.03 Mar||2.74||-10.88||29034000||119.9||IBREALEST.17.03 Mar||80.9||-1.34||-9.94||23380000|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Hero MotoCorp Limited||3326.9||-0.49||338652||9071572||98.87||Nifty 50||9100.8||0.61||79509|
|Tata Motors DVR A Ord||285.65||2.48||2464330||7013593||89.65||Nifty Bank||21225.4||0.8||79509|
|Kotak Mahindra Bank Limi||859.45||-1.34||3049130||3673713||84.94||Nifty IT||10681.05||0.31||79509|
|HDFC Ltd.||1504.1||1.99||2272786||2018971||83.47||INDIA VIX||12.12||-2.59||79509|
|Infosys Limited||1035.15||0.61||2398398||2995550||77.96||Nifty Energy||11298.2||-0.09||79509|
|ITC Ltd.||280.5||-0.39||6289874||9351305||76.93||Nifty FMCG||23467.7||0.1||79509|
|Hindustan Unilever Ltd||903.1||0.48||565803||2156284||76.17||Nifty Pharma||10497.7||0.53||79509|
|Cipla Ltd||594.15||0.35||772698||787520||75.84||Nifty Realty||212.15||-0.42||79509|
|Hindustan Zinc Ltd||326||0.65||6512418||4691817||74.53||Nifty Infrastructure||3049.7||0.58||79509|
|Wipro Ltd||507.55||0.7||623110||730485||74.45||Nifty Auto||9887.8||0.81||79509|
UPCOMING ECONOMIC DATA
|•Nikkei Manufacturing PMI on 03rd April , 2017.
•IIP Data on 12th April , 2017. (Tentative)
|•Ashok Leyland will invest Rs 400 crore to develop new light commercial vehicles (LCVs) within the next two years and plans to triple its sales in the segment by 2019-20.
•Suven Life Sciences has received one product patent from New Zealand for its molecule to be used in the treatment of neuro-degenerative diseases.
•Cairn India and Vedanta have received all the required approvals for their merger, except the Reserve Bank of India’s nod for issue of preference shares, accelerating the process of combining the two companies.
•V-Guard Industries has received in-principle approval from its board to acquire a majority stake in Guts Electromech Ltd.
Source: Economic Times, Business Standard .
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|NBCC||Dividend||29-Mar-17||KOTAKBANK||Raising of Funds||30-Mar-17|
|SUBROS||Issue of Securities||29-Mar-17||MONNETISPA||Appointment||30-Mar-17|
|COFFEEDAY||Issue of Securities||30-Mar-17||SUMEETINDS||Rights Issue||31-Mar-17|
|JINDALSTEL||Raising of Funds||30-Mar-17||GUFICBIO||Meeting Updates||3-Apr-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|BEL||Interim Dividend – Rs. – 0.9000||29-Mar-17||SHARDACROP||Interim Dividend – Rs. – 2.0000||30-Mar-17|
|HINDZINC||Special Dividend – Rs. – 27.5000||29-Mar-17||ASHARI||Bonus issue 4:1||31-Mar-17|
|NBCC||Interim Dividend – Rs. – 0.5300||29-Mar-17||INFRATEL||Interim Dividend – Rs. – 12.0000||31-Mar-17|
|MAHLIFE||Right Issue of Equity Shares||30-Mar-17||SFCL||Amalgamation||31-Mar-17|
|MPHASIS||Buy Back of Shares||30-Mar-17||OIL||Buy Back of Shares||3-Apr-17|
|MUTHOOTFIN||Interim Dividend – Rs. – 6.0000||30-Mar-17||CONCOR||Bonus issue 1:4||5-Apr-17|
|PFC||Interim Dividend – Rs. – 5.0000||30-Mar-17||COLPAL||Interim Dividend – Rs. – 3.0000||6-Apr-17|
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